This benefits the buyer more, since depending on how it is written, it can lock in a future price and if the buyer would benefit from exercising the option he may, if the numbers run against him he can back out. 

I think it depends on you. 

going to depend on the season and if your utilities are electric or gas . also will depend on the energy efficiency of the home 

You'll know all your scores and stats to share with another loan broker to ask them if it's worth pulling credit or if what you have is a good deal.

@Joe PirapakaranHigher or less leverage (i.e. more or less cashflow) is a decision dependent upon your goals and strategy. 

@Zach Ranney it really depends on the work you are doing to it. 

There may be local special first-time homebuyer programs that she can apply for, but I believe most will require some minimum credit score and employment length.

Updates/Upgrades with a 2-4 years payback will be done depending on my overall goal for the property.

Depending how fancy you want to get, it usually costs between $300-$500/sq ft in that area.

Depends on a lot of factors....sq. footage, does it involve the kitchen, bathrooms, etc. exterior changes, etc. $1000-3000+  That includes communication time, going out to the site to measure, etc.